London-listed fintech giant Plus500 was struck a blow by investors yesterday as shareholders voted down the firm’s remuneration report at its annual general meeting.
Some 55 per cent of shareholders rebuffed the proposed executive pay report yesterday after the world’s biggest shareholder group, Institutional Shareholder Service (ISS), moved against the firm.
Analysts at ISS said bonuses were set to be dished out to Plus500 bosses without appropriate performance targets in place.
“Concerns have been identified regarding whether performance targets under the annual bonus, which paid out at maximum for the year under review, were suitably stretching,” the ISS said in a report.
“In addition, as in the previous year, there is scope for more robust disclosures around the target-setting methodology of the variable incentives.”
Plus500 is the latest firm to be hit by a revolt over executive pay during ‘AGM season’, when boards face down shareholders, with grocery tech firm Ocado bracing itself for a revolt over bosses’ pay today.
The FTSE 100 firm is looking to extend an incentive scheme that could net boss Tim Steiner up to £20m a year, but the plans have already received backlash from investors with asset management giant Royal London saying it had voted against the plans.
“This is another example of how poorly designed incentive plans can lead to excessive awards for management,” said Sophie Johnson, RLAM’s corporate governance manager.